TEHRAN: Iran’s minister of oil said the pipeline for gas exports to Oman will circumvent territorial waters of Qatar and is estimated to cost about 1.2 billion dollars. Speaking on the sideline of a meeting with Oman’s Minister of Oil and Gas Mohammed Al Rumhi on Tuesday in Tehran, Iranian Oil Minister Bijan Zanganeh said the two main axis of talks with the Arab state included oil market conditions and finalizing the contract for gas exports.
“Both sides voiced satisfaction towards current conditions in the crude market thanks to cooperation between OPEC and non-OPEC countries,” highlighted the official asserting that several negotiations were also held with Oman over construction of the pipeline for exports of Iranian gas to the Persian Gulf littoral state. In response to a question on objection of the UAE to laying pipelines in his territorial waters, he explained “Tehran and Muscat have agreed that the pipeline will pass through deep waters without crossing waters under the governance of the United Arab Emirates.
When asked on economic justifiability of the gas export project in case the pipeline is laid in deep waters, Iran’s oil minister said the project’s economy will not be affected by crossing deep waters and both sides are still seeking to finalize the project. He also pointed to presence of representatives from South Korea’s KOGAS, Total of France, Britain’s Royal Dutch Shell as well as Mitsubishi of Japan in the Tuesday talks emphasizing that foreign firms presented reports on conditions of pipeline construction. Zanganeh estimated that final agreement of gas exports to Oman will have been reached by February 2017 noting that a document was also inked between Iran and Oman in a bid to extend the earlier deal between the two parties.
The official went on to underlined that approximately 1.2 billion dollars of investment was required to construct the gas export pipeline to Oman in onshore, offshore and extra facilities sectors; “Iran is expected to participate in LNG projects of the neighboring country once the project is accomplished.” On method of partnership in the project by foreign parties like KOGAS, Total and Shell, he explained that representatives of these firms offered proposals and all executive options are on the table though consensus will be reached on one strategy in the near future. Bijan Zanganeh further touched upon possibility of transferring gas to the UAE via Oman emphasizing that it was a probable theory the details of which will be talked over with the Omani side in following meetings.”
